Tuesday, January 18, 2005

Daniel Mears / The Detroit News Chrysler CEO Dieter Zetsche, with the Jeep Hurricane concept at the North American International Auto Show, promises the automaker's product push will continue.

Chrysler: 5 new models in '05

The automaker hopes to repeat last year's market share and sales gains.

By Brett Clanton / The Detroit News

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DEARBORN -- DaimlerChrysler AG's Chrysler Group will introduce at least five new vehicles this year, down from a record nine in 2004, to fuel the sales momentum that made it the only Detroit automaker to gain U.S. market share last year.

In a speech Monday night at the 2005 Automotive News World Congress in Dearborn, Chrysler CEO Dieter Zetsche confirmed for the first time the number of new vehicles the Auburn Hills automaker will introduce in 2005 as it tries to claim a bigger chunk of U.S. car and truck sales for a second year.

"In 2005, we'll bring the new Dodge Charger, Jeep Commander and at least three more vehicles to the market," Zetsche said.

Chrysler unveiled the 2006 Dodge Charger sedan at the North American International Auto Show and plans to show the Commander, a luxury SUV with three rows of seats, at the New York Auto Show in March.

A third major vehicle, the Dodge Ram Mega Cab, a large pickup based on the Dodge Ram, will also be introduced this year, Chrysler marketing chief Joe Eberhardt said last week.

Zetsche did not identify the other two vehicles.

"Chrysler will have a more laser-like focus in 2005 with fewer products, which will set up a big 2006," said J Ferron, automotive partner with PricewaterhouseCoopers LLP.

He said the Charger and Commander are high-volume vehicles, which should help the company maintain sales.

The hot Chrysler 300 helped boost Chrysler's U.S. sales 3.2 percent last year, increase its market share to 13 percent from 12.8 percent and restore profits. But analysts have suggested that a slowdown in new vehicle launches this year could hurt the automaker's momentum.

"Of course, we know that our competitors aren't sitting on their hands," Zetsche said. "That's why the Chrysler Group will, and must, continue to develop and launch new vehicles at a brisk pace."

The automaker also is making progress toward a goal of matching industry-leading Japanese automakers on productivity and quality by 2007. Chrysler's vehicle-building speed improved by about 8 percent in both 2002 and 2003, and by roughly 4 percent in 2004. The company also has driven down new vehicle warranty costs by 34 percent since 2001, Zetsche said.

In addition to major launches this year, Chrysler will roll out high-performance versions of the Chrysler 300 sedan, Dodge Magnum wagon and possibly the Dodge Charger. But none of those will be counted as part of the 25 new vehicles Chrysler promised by the end of 2006.

A coupe version of the Dodge Viper sports car also is on the way, but it is unclear if it will be counted among the 25 new vehicles that Chrysler defines as being totally new or having undergone a substantial upgrade. The Viper line once had a coupe that was later phased out in favor of a convertible model only.

Zetsche said Chrysler also is considering whether it will build production versions of the Chrysler Firepower sports car and Jeep Gladiator pickup concepts. The company will decide within a year. If Chrysler launches five major vehicles this year, that will leave 11 launches in 2006.

"In 2006, we'll aim to break the record for new vehicle launches we set last year," Zetsche said. "And our product pipeline beyond 2006 will also be full. We're not going to let up."

You can reach Brett Clanton at (313) 222-2612 or bclanton@detnews.com.